Evergreen Corporation manufactures circuit boards and is in the process of preparing next years budget. The pro forma income statement for the current year is presented below Sales Cost of sales $3,500,000 Direct Material Direct labor Variable Overhead Fixed Overheac $500,000 250,000 275,000 600,000 1,625,000 $1,875,000 Gross Profit Selling and General & Admin. Exp Variable Fixed 750,000 250,000875.000 1,000,000 Operating Income For the coming year, the management of Evergreen Corporation anticipates a 5 percent decrease in sales, a 10 percent increase in variable costs, and a $45,000 increase in fixed costs The break-even point for next year would be $3,022,500 $2,947,500 $2,668,750 $2,168,225